1. Trans European Replacement Reserve Exchange
ERI SWE
TERRE #2
Trans European Replacement Reserve Exchange
Amine Abada
06/10/2014

2. Please take in consideration these slides as the study state of the TERRE project
The information provided is under improvement and do not reflect the final stage of the project

3. Offers

4. Definition of standard products Updated proposal - Introduction
TERRE Product  in line as close as possible with the RR standard product definition (current draft). The TERRE platform must treat the Standard products from its implementation (beginning)
Compliant with TSOs requirements
Delivery Period should be included in 1h time window
TERRE product  Scheduled product/Manual activated
15min < Full Activation Time(FAT) < 30min
TSOs have the possibility to convert local balancing product into TERRE Standard product

5. Definition of standard products
Updated proposal
BRPs can propose an offer which represents several products
The matching algorithm will select the offer and “use” the product needed
Structure of standard balancing product
Basic criteria
1- Preparation period = NA
2- Ramping period = NA
2b- Full activation time = Between 15 min and 30min 3
3- Min quantity = 1 MW
3- Max Delivery period = 60 min
4- Delivery period = 15 min, 30min, 45min or 60min (depends on divisibility) 2b 4 5
5- Deactivation period = Ramping period
Time Divisibility : 15min or 30min
Quantity divisibility: 1MW

6. Definition of standard products Updated proposal - Characteristics4 3
The others characteristics must be defined in order to be taken into account by the solution:
The price
When the offer should be activated in order to be matched with TSO(s) need(s)
The TERRE solution must be compliant with the target of NC EB
Processing of standard products
Optimization algorithmic compliancy, results and activations… =
Energy volume considered in the matching process

7. Definition of standard products Linked offers / firmness of offers
In fact, the offers could be linked with others
Ex: the BRP can give the information that if we call for product 1 (Delivery period 15min) the TSOs (the TERRE solution) must activate product 2 (Delivery period 30min)
This “new” parameter must be considered by the TERRE solution
Remark: for TERRE, the offers could be linked but within the same CMO (CMO RR)
Once the offer is selected by the matching process and asked for activation, the TSO which submitted the offer is responsible (also financially) for its delivery on its border.

8. Needs and matching

9. Needs netted and matched Offers which must be activated
TERRE process ??
XB capacity used XB
Capacity
Needs netted and matched
Products
TERRE
TSOs
Offers which must be activated
TSOs
Needs

10. Needs
Each TSO must submit to TERRE, after the ID GCT and before the TERRE algorithmic matching process, the need expected for the next hour/delivery period
The methodology for needs determination is under the responsibility of each the TSO
We present in the next slides, how the needs could be matched with other (opposite) needs or products

11. The project focus its studies on algorithmic matching
Matching process
The project focus its studies on algorithmic matching
After the qualitative study and first prototype (simplistic) which concluded that for TERRE the must efficient solution is an algorithmic optimization based on implicit auctions model, the project will make a second study presenting “mathematical equations”
The project will process quantitative simulations in order to demonstrate that this solution could be implemented at a “industrial” level

12. Definition of standard products
Possible approach for matching of needs
Matched by or local products
Structure of TSO need (example)
XB scheduling step = 30min
Matched only by local products ?
ID Market
Matched by XB or local products
H-1h H
H+1h
TERRE processing
Delivery period
= XB scheduling step = 1h
The TSO (Control Block) net position ( ) updated by TERRE results must be the same fore the whole delivery hour  LFC process